Correlation Between Ambrus Core and Federated Short-intermedia
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Federated Short-intermedia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ambrus Core and Federated Short-intermedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambrus Core Bond and Federated Short Intermediate Duration, you can compare the effects of market volatilities on Ambrus Core and Federated Short-intermedia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ambrus Core with a short position of Federated Short-intermedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Federated Short-intermedia.
Diversification Opportunities for Ambrus Core and Federated Short-intermedia
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ambrus and Federated is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Federated Short Intermediate D in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Short-intermedia and Ambrus Core is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ambrus Core Bond are associated (or correlated) with Federated Short-intermedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Short-intermedia has no effect on the direction of Ambrus Core i.e., Ambrus Core and Federated Short-intermedia go up and down completely randomly.
Pair Corralation between Ambrus Core and Federated Short-intermedia
Assuming the 90 days horizon Ambrus Core Bond is expected to generate 1.18 times more return on investment than Federated Short-intermedia. However, Ambrus Core is 1.18 times more volatile than Federated Short Intermediate Duration. It trades about 0.14 of its potential returns per unit of risk. Federated Short Intermediate Duration is currently generating about 0.13 per unit of risk. If you would invest 994.00 in Ambrus Core Bond on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Ambrus Core Bond or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. Federated Short Intermediate D
Performance |
| Timeline |
| Ambrus Core Bond |
| Federated Short-intermedia |
Ambrus Core and Federated Short-intermedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Federated Short-intermedia
The main advantage of trading using opposite Ambrus Core and Federated Short-intermedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, Federated Short-intermedia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Federated Short-intermedia will offset losses from the drop in Federated Short-intermedia's long position.| Ambrus Core vs. Virtus High Yield | Ambrus Core vs. Pgim High Yield | Ambrus Core vs. Pioneer High Yield | Ambrus Core vs. Alpine High Yield |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |